SOP Finance and Accounting – Vendor Credit Letter

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Hotel Vendor Credit Letter

Purpose of Vendor Credit Letter :

This policy defines a standard form for obtaining credit from vendors on behalf of a hotel managed by Your Hospitality. It is the responsibility of the Controller to provide vendors with a clear outline of information regarding ownership.

A vendor credit letter is a document that is sent to a vendor or supplier requesting a credit for goods or services that were overcharged or not delivered as expected. In the context of finance and accounting, it is important to have a standard operating procedure (SOP) in place for handling vendor credit letters.

The SOP should outline the steps to be taken when a vendor credit letter is received, including verifying the accuracy of the claim, communicating with the vendor, and processing the credit in the accounting system. It is important to handle vendor credit letters promptly to maintain good relationships with vendors and avoid overpaying for goods or services.

In addition to the SOP, it is recommended to have a template for vendor credit letters that includes all necessary information such as the vendor’s name and address, the date of the original transaction, the amount of the credit requested, and any supporting documentation.

By following a well-defined process for handling vendor credit letters, finance and accounting departments can ensure timely and accurate processing of credits, which can ultimately help to reduce costs and improve overall vendor relationships.

Vendor Credit Letter SOP Procedures:

The following information should be prepared on property letterhead to establish credit with vendors:

  • OWNER’S NAME Legal ownership of Hotel
  •  MANAGING AGENT Legal Managing Co. name not “Your Hospitality”
  •  TRADE NAME d/b/a Name of Hotel
  •  MAILING ADDRESS Address with “Attn: Accounts Payable”
  •  TELEPHONE Hotel number or DDA for Accounts Payable
  •  CONTACT Accounts Payable
  •  BANK Bank used for Operating Account
  •  OFFICE Bank Officer contact

                   THREE VENDOR REFERENCES

Name:__________________ Name:__________________ Name:__________________

Address:________________ Address:_________________ Address:_________________

Telephone:______________ Telephone:_______________ Telephone:________________

Contact:________________ Contact:_________________ Contact:_________________

Note: If you need further information, please do not hesitate to contact the Hotel Controller.

Sample Vendor Credit Letter For Use In Hotels And Resorts:

[Your Hotel/Resort Letterhead]


[Vendor's Name]
[Vendor's Address]
[City, State, ZIP Code]

Dear [Vendor's Name],

Subject: Request for Vendor Credit

I hope this letter finds you well. We appreciate the products and services your company provides to [Your Hotel/Resort]. However, we have identified an issue with a recent transaction, and we are writing to request a credit for the associated amount.

Transaction Details:

Invoice Number: [Invoice Number]
Date of Transaction: [Date]
Description of Goods/Services: [Description]
Amount Charged: [Amount]
Reason for Credit Request:
[Explain the reason for the credit request – e.g., overcharge, goods not delivered as expected, etc.]

Supporting Documentation:
[Attach any supporting documents such as invoices, receipts, or any other relevant documentation supporting the credit request.]

Action Taken:
[Describe any action taken on your end to address the issue, if applicable.]

We kindly request your prompt attention to this matter. To facilitate the processing of this credit, we have attached a Vendor Credit Authorization Form, which provides authorization for the credit to be applied to our account.

[Include any specific instructions or information required from the vendor to process the credit.]

We understand the importance of maintaining a positive and transparent relationship with our valued vendors, and we appreciate your cooperation in resolving this matter promptly.

Thank you for your attention to this request. If you have any questions or require additional information, please do not hesitate to contact our finance department at [Finance Department Contact Information].


[Your Full Name]
[Your Position]
[Your Hotel/Resort Name]
[Your Contact Information]

[Attach Vendor Credit Authorization Form]

Note: Ensure to replace the placeholders in square brackets with the actual details relevant to your situation. Additionally, consider consulting with your legal or finance department to ensure the letter aligns with your organization's policies and procedures.

Training Summary Questions:

  1. What is the purpose of a Vendor Credit Letter in the context of hotel management, as outlined in the policy?
  2. Who is responsible for providing vendors with a clear outline of information regarding ownership, according to the policy?
  3. Define a Vendor Credit Letter and explain when it is typically sent to a vendor or supplier.
  4. Why is it important to have a standard operating procedure (SOP) for handling vendor credit letters in finance and accounting?
  5. What are the key steps that should be outlined in the SOP when a vendor credit letter is received?
SOP Number: Finance and Accounting SOP – 25
Department: Accounts Payable
Date Issued: 8-Aug-2021
Time to Train: 25 Minutes
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